Federal Reserve Chairman Powell's recent public statements have undoubtedly thrown cold water on Trump's tax increase strategy. Powell has consistently maintained a cautious attitude towards Trump's global tax increase strategy, even bluntly pointing out that the negative impact of this strategy on the U.S. economy should not be underestimated.

Specifically, Powell believes that raising tariffs could trigger a series of chain reactions, the first of which is to push up domestic inflation levels. As tariff measures are implemented, the prices of imported goods rise, leading to increased costs for businesses, which may ultimately be passed on to consumers, resulting in higher living costs for the public. More critically, this policy could also drag down U.S. economic growth. In today's highly integrated global economy, the U.S. increasing tariffs is likely to provoke retaliatory measures from other countries, thereby impacting the U.S. export sector and hindering overall economic development.

In terms of monetary policy, the differences between the two are also very evident. Powell sees controlling inflation as one of the Federal Reserve's core tasks, thus firmly opposing interest rate cuts. He is concerned that lowering interest rates could further fuel inflation and disrupt economic balance. However, Trump has other considerations. In order to stimulate the stock market's prosperity and alleviate the current fiscal pressures facing the U.S., he has consistently hoped that the Federal Reserve would adopt interest rate hikes, in order to create a seemingly more dynamic economic environment.

As time goes on, the contradictions in economic policies between the two sides have been escalating. In a recent public discussion, Powell once again criticized Trump's tariff policy, emphasizing that the Federal Reserve faces a difficult choice between controlling inflation and reducing unemployment in response to the current economic situation. This ruthless criticism has completely touched Trump's bottom line, making the contradictions between the two fully public, and Trump finally decided to take tough measures, ordering the government to prepare a replacement plan for Powell.

It is worth noting that Powell was personally nominated by Trump as Chairman of the Federal Reserve during his previous term. Now that their relationship has broken down, this itself conveys an important signal: Trump's tariff policy has not gained widespread acceptance in the U.S. financial community.